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With COVID-19 some providers have experienced lower levels of occupancy and a net cash outflow of RADs / RAD refunds.

To assist eligible residential aged care providers, the Federal Government has announced up to $128.8 million in zero interest loans through the Refundable Accommodation Deposit (RAD) Support Loan Program.

Applications are open from 1 July to 30 September 2021.

What support can I get?

The purpose of this funding is to assist eligible providers facing liquidity challenges to refund their RAD liabilities that arise from 1 July 2021 until 31 December 2021 (i.e., the Government is effectively providing a short-term loan with zero interest and a “repayment holiday” period).

Providers can apply for funding for up to the following amounts:

Applicant Group’s number of facilities   Maximum Loan Facility 
1 Facility  30% of RAD liabilities
2-4 Facilities  15% of RAD liabilities
5+ Facilities  6% of RAD liabilities


Eligibility and Process

To be eligible for funding, a provider:

  1. Must have had or expect its liquidity to fall below certain threshold levels (This is based on the providers’ minimum Liquidity required to be retained as at 1 April 2020 as a proportion of RAD Refund Liabilities.).
  2. Must be assessed as being able to repay funds loaned, and
  3. Are not able to access sufficient commercial or alternative financing.

The application process consists of 2 stages:

Stage 1: Submission of an eligibility assessment form with the Department of Health, which assesses an organisation against the eligibility criteria above.

Stage 2: Subject to approval, submit an application for assessment and a range of supporting financial documents.

Providers Obligations

The proposed funding is a loan and not a grant and therefore repayable.  The provider however receives a “Repayment Holiday” until December 2021.

Any loan received is generally repaid over 2 years, in equal 8 quarterly instalments from 31 March 2022 to 31 December 2023, (unless RAD collections improve such that you have the ability to make a larger repayment / repay the loan faster)

Part of the condition of the Loan, the Government will require Security, generally over any unencumbered assets.  

Providers should consider the above as well as any implications with existing financing relationship.

If you need any further assistance, or have any further questions relating to Aged Care Operations, please contact us to discuss how Anchor Excellence can assist your organisation’s needs

Paul Harris

Chief Financial Officer

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